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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?

To: cosmicforce who wrote (85871)	8/21/2000 1:40:02 AM
From: average joe	Respond to of 108807

You are forgetting a few things Cosimo. #1 the oil company pays a massive bonus, sometimes tens of millions of dollars for every lease they acquire. #2 the oil company makes annual delay rental payments. #3 the oil company pays a GORR (Gross Over-Riding Royalty) on the production with no costs deducted outside of that proportionate share of tax. And don't forget that a lease covers a specific zone of production. So the same parcel can be leased out many times with different zones offered and the government raking in the cash in bonus payments, delay rentals and royalty income World-wide the average royalty reserved for the mineral owner is 1/8th. However we have leases where we have up to a 25% interest payable. That is usually in a situation where you have a smaller interest inside a larger parcel of land. I am glad you think we will still need oil 100 years from now. There is a lot of deep oil in the U.S. and Canada. Most of which will never be taken out of the ground, at $30 a barrel it is still too expensive. The Fort McMurray oil sands are more economic than your deep oil. Listen to this - page 84 from - Preliminary Report 65-3 ATHABASCA OIL SANDS BIBLIOGRAPHY (1789 - 1964) compiled by M.A. Carrigy ------------(1959): Alberta Technical Committee report to the Minister of Mines and Minerals and the Conservation Board with respect to an experiment proposed by Richfield Oil Corporation involving an underground nuclear explosion beneath the McMurray oil sands with the objective of determining the feasibility of recovering oil with the aid of the heat released from such an explosion; 55 pages Crazy huh??? links FYI oilsandsdiscovery.com fortmcmurrayhistory.com ab-biz.com